Proof of Authority
Proof of Authority (PoA) is a consensus mechanism used in blockchain networks where validators are pre-approved and identified entities, rather than anonymous miners or stakers. It relies on the reputation and identity of validators to secure the network and validate transactions, making it highly efficient and scalable. PoA is commonly used in private or consortium blockchains where trust among participants is established.
Developers should learn PoA when building or working with enterprise blockchain solutions, such as supply chain tracking, financial services, or internal corporate networks, where high throughput, low latency, and regulatory compliance are critical. It is ideal for scenarios where participants are known and trusted, as it eliminates the energy-intensive mining of Proof of Work and reduces the complexity of Proof of Stake, while ensuring fast transaction finality.